The History of the Wind Tax Credit

Federal Production Tax Credit (1992)

In December 2015, the federal production tax credit was extended for another 5 years until December 31, 2019

These ten-year credits will payout to December 23,2029

No maximum rebate

Oklahoma Zero Emission Tax Credit

Enacted in 2001 by the Easley-sponsored GRDA bill, which calculated ongoing costs at $2 million per year through an additional 0.5-cent per kWh subsidy

For 2017 generation, the ZETC will cost the state over $170 million

The wind industry has dramatically expanded their take from the State through a cafeteria-like plate of incentives, reaching an expected $700 million in subsidies, exemptions and lost revenues to Oklahoma in 2017. Wind companies currently contract employ 26 lobbyists at the Oklahoma legislature.

The Oklahoma Giveaway = $10+ Billion

A Cafeteria-Like Plate of Incentives Never Before Extended in Oklahoma

Source: 1. See Calculated Subsidies by Calendar Year Chart in Appendix.

15-year investment tax credit is based on up to 2% of the cost of the qualified depreciable property – Ends in 2017/Payout to 2032

Investment Tax Credit in Wind Companies’ Back Pocket

Investment tax credit based up to 2% of the cost of qualified depreciable property

May be claimed for 5 years based upon the initial expenditure

May be carried forward for up to 15 years

Expires January 1, 2017
Potential payout to 2032

Oklahoma wind producers are not currently cashing in these investment tax credits, but will likely choose to do so as soon as they are actually required to pay Oklahoma state taxes, making this credit a long-term liability

Estimated to be between $150 - $200 million

Wind facilities qualify for the Manufacturers Sales Tax Exemption

Manufacturer Sales Tax Exemption for Wind

Wind Turbine x
State Sales Tax

$2 million x 4.5% =
$90,000*

2,800 installed turbines
in 2015

2,800 x $90,000 =
$252 million

740 new turbines planned
for 2016

740 x $90,000 =
$67 million

Possible 3,152 new turbines** in 2017
based on FERC interconnect filings

The term “carpet baggers” is truly applicable to these out-of-state and foreign wind companies.
They don’t live here, don’t vote here, and don’t contribute to Oklahoma communities or economy.
Oklahomans are being forced to sacrifice the education of Oklahoma’s children for the benefit of out-of-state companies.

The Broken Promises of the Wind Industry to Oklahoma

The zero emission tax credit was originally pitched to only cost the state less than $2 million per year –
was amended and extended, resulting in a virtual hockey stick ascent to an unsustainable height